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AMERICAN ORNITHOLOGISTS' UNION FINANCIAL STATEMENTS for the Year Ended July 31, 1986

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AMERICAN ORNITHOLOGISTS' UNION FINANCIAL STATEMENTS for the Year Ended July 31, 1986 18AA AMERICAN ORNITHOLOGISTS' UNION FINANCIAL STATEMENTS For the Year Ended July 31, 1986 To the Membership American Ornithologists'Union We have examinedthe balancesheet of the American Ornithologists'Union as of July 31, 1986, and the related statementsof supportand revenue,expenses, capital additions,and changesin fund balancesand of changesin financialposition for the year then ended.Our examinationwas made in accordancewith generallyaccepted auditing standards and, accordingly,included such testsof the accountingrecords and suchother auditing proceduresas we considerednecessary in the circumstances. In our opinion,the financialstatements referred to abovepresent fairly the financialposition of the AmericanOrnithologists' Union at July 31, 1986, and the resultsof its operations,and the changesin fund balancesand its financial positionfor the year then ended, in conformity with generallyaccepted accounting principles applied on a consistentbasis. October 3, 1986 Schehrer, Harrod & Bennett Professional Association Certified Public Accountants Lawrence, Kansas AMERICAN ORNITHOLOGISTS' UNION BALANCE SHEET As of July 31, 1986 Operating Endowment Total Funds Funds All Funds Assets Cash ............................................................................................................................$ 112,049 $ 112,049 Refunds receivable .....................................................................................1,796 1,796 Inventories (Note 1)* ...............................................................................201,078 201,078 Investments(Note 2) ................................................................................732,493 362,332 1,094,825 Total Assets.................................................................................................. $1,047,416 $362,332 $1,409,748 Liabilities and Fund Balances Deferred amounts-restricted(Note 3) ...................................$ 175,200 $ $ 175,200 Total Liabilities .......................................................................................175,200 175,200 Fund Balances Unrestricted Designatedby the governingboard for long-term investment................................................. 557,293 557,293 Undesignated....................................................................................... 305,000 305,000 862,293 862,293 Restricted .......................................................................................................9,923 362,332 372,255 Total Fund Balances ..........................................................................872,216 362,332 1,234,548 Total Liabilities and Fund Balances ....................................................................................$1,047,416 $362,332 $1,409,748 * The notesto the financialstatements are an integralpart of this statement. 19AA AMERICAN ORNITHOLOGISTS' UNION STATEMENT OF SUPPORT AND REVENUE, EXPENSES, CAPITAL ADDITIONS AND CHANGES IN FUND BALANCES For the Year Ended July $1, 1986 OperatingFunds EndowmentFunds- Total UndesignatedDesignated Restricted Restricted All Funds Supportand Revenue Membershipdues and subscriptions...... $121,302 $ $ $ $121,302 Saleof publications.............................................. 53,865 53,865 Investment income .............................................. 12,162 27,874 40,036 Contributionsand bequests........................... 25,475 1,887 27,362 Net gain on investments.................................. 38,435 38,435 Unrealized gainson investments.............. 69,848 69,848 Other income.......................................................... 5,902 5,902 Total Supportand Revenue.............. 218,706 136,157 1,887 356,750 Expenses Program Services Printingand publications.......................... 207,464 207,464 Membershipmaintenance ........................ 13,560 13,560 Meetings.................................................................. 8,350 8,350 Grants and donations.................................... 11,691 6,717 18,408 Total ProgramServices ......................... 241,065 6,717 247,782 Supporting Services Contract labor ................................................... 8,784 8,784 Other administration costs....................... 13,147 13,147 Total SupportingServices ................... 21,931 21,931 Total Expenses............................................ 262,996 6,717 269,713 Excess[deficiency] of supportand revenue overexpenses before capital additions. [44,290] 136,157 [4,830] 87,0•7 Capital Additions Unrealizedgain on investments.......... 45,413 45,413 Investment income ......................................... 18,123 18,123 Net gain on investments........................................ 24,989 24,989 Total Capital Additions........................ 88,525 88,525 Excess[deficiency] of supportand revenue over expensesafter capitaladditions ..... [44,290] 136,157 [4,830] 88,525 175,562 Fund Balanceat Beginningof the Year_. 313,586 444,599 11,738 289,063 1,058,986 Realized gainson endowment funds utilized ......................................................12,241 3,015 [15,256] Transfersfrom designated funds ..........................................................................23,463 [23,463] Fund Balances at End of the Year ............... $305,000 $557,293 $ 9,923 $362,332 $1,234,548 20AA AMERICAN ORNITHOLOGISTS' UNION STATEMENT OF CHANGES IN FINANCIAL POSITION For the Year Ended July $1, 1986 OperatingFunds EndowmentFunds Total UndesignatedDesignated Restricted Restricted All Funds Resources Provided Excess[deficiency] of support and revenueover expenses before capital additions.............................. $[44,290] $136,157 $ [4,830] $ $ 87,037 Capital additions: Unrealizedgains on investments ..................................................... 45,413 45,413 Investment income ......................................... 18,125 18,123 Net gain on investments ............................ 24,989 24,989 Excess[deficiency] of support and revenue over expenses after capital additions............................ [44,290] 136,157 [4,830] 88,525 175,562 Items that do not use[provide] resources Net gain on investments............................ [38,435] [24,989] [63,424] Unrealized gainson investments..................................................... [69,848] [45,413] [115,261] Proceeds from sale of investments........................................................... 315,343 205,025 520,368 Total ResourcesProvided ................... [44,290] 343,217 [4,850] 223,148 517,245 Resources Used Purchasesof investments................................. $05,934 198,907 504,841 Increase in receivables...................................... 1,796 1,796 Increase in inventories ...................................... 67,542 67,542 Total ResourcesUsed ............................. 69,$38 305,934 198,907 574,179 Transfers Realized gainson endowment funds utilized ......................................................12,241 $,015 [15,256] Transfersfrom designatedfunds .............. 23,463 [23,463] Total Transfers............................................. 35,704 [23,463] 3,015 [15,256] Increase[Decrease] in Cash................................ $[77,924] $ 13,820 $ [1,815] $ 8,985 $[56,934] AMERICAN ORNITHOLOGISTS' UNION NOTES TO FINANCIAL STATEMENTS For the Year Ended July $1, 1986 Note 1--Summary of Significant AccountingPolicies The financialstatements of the American Ornithologists'Union have been prepared on the accrualbasis. The significantaccounting policies followed are describedbelow to enhance the usefulness of the financial statements to the reader. Income Taxes The organizationis exemptfrom federal incometax underInternal RevenueCode Section 501(c)($) and from state income tax under applicable state law. Fund Accounting To ensureobservance of limitationsand restrictionsplaced on the useof resourcesavailable to the organization,the accountsare maintainedin accordancewith the principlesof fund accounting.This is the procedureby which resourcesfor variouspurposes are 21AA classifiedfor accountingand reportingpurposes into fundsestablished according to their natureand purpose.The assets,liabilities and fund balancesof the organizationare reportedin two self-balancingfunds as follows: 1. Operatingfunds, which include restricted and unrestrictedresources, represent the portionof expendablefunds that are availablefor supportof organizationoperations. 2. Endowmentfund, which is subiectto restrictionsof gift instrumentsrequiring in perpetuitythat the principalbe investedand only incomebe used. Inventories Inventoriesare valued at the lower of cost(first-in, first-out)or market. MembershipDues Membershipdues are recognizedas revenuein the applicablemembership period. Note 2--Investments Investmentsare presentedin the financialstatements in the aggregateat fair market value. Cost Market Deferred amounts--restricted ..............................................................................$ 25,$88 $ 175,200 Operating funds--designated............................................................................... 428,705 557,295 Endowment funds--restricted .............................................................................278,729 $62,$$2 $750,822 $1,094,825 Investmentsare composedof the following: Cost Market Money market account................................................................................................ $ $9,540 $ $9,540 U.S. Governmentobligations ................................................................................. 99,254 116,125 Corporatedebentures
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